Understanding Life Insurance Trusts
How to Reduce or Eliminate Your Estate Tax Cost
16. When should I set up an insurance trust?
You can set up one any time, but because the trust is irrevocable, many people wait until they are in their 50s or 60s. By then, family relationships have usually settled - and you know whom you want to include as a beneficiary.
Just don't wait too long - you could become uninsurable. And remember, if you transfer existing policies to the trust, you must live three years after the transfer for it to be valid.